9:25 AM, 15th May 2024, About 2 months ago 20
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As the House of Lords gears up to debate the Renters (Reform) Bill today, they are being warned that landlords selling their properties is the biggest challenge facing renters in the UK.
That’s according to the National Residential Landlords Association (NRLA) is pointing to government figures.
The data reveals that 45% of households that needed council support to prevent homelessness in the second half of 2023 did so because their landlord planned to sell.
This dwarfs the next most common reason, repossession for re-letting at just over 20%.
The NRLA’s chief executive, Ben Beadle, said: “Landlords selling up is the single biggest challenge renters face.
“The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.
“As Peers debate the Renters (Reform) Bill, it is vital that it works for landlords as well as tenants.”
He added: “As it stands, it would achieve this balance. We are calling on Peers to support the Bill to give the sector certainty about the future.
“More broadly, all parties need to accept widespread calls for policies to boost supply in the private rented sector.”
The organisation’s call comes after Generation Rent warned that ‘landlords selling properties is a leading cause of homelessness’.
Research from NRLA backs this claim up and a poll of landlords found that 83% say that tenant demand is ‘strong’.
Also, 31% of landlords say they plan to reduce portfolio sizes – compared with just 9% who plan to buy more properties.
The NRLA says its findings are supported by Rightmove which recently said that the PRS needs 50,000 properties to bring supply back to pre-pandemic levels.
However, Generation Rent has hit back at the NRLA’s ‘warning’ to peers that landlords will sell up as they prepare to debate the Renters (Reform) Bill.
Its chief executive, Ben Twomey, said: “Landlord lobby groups have taken to quoting Generation Rent’s concern that ‘Landlords selling properties is a leading cause of homelessness’, and are cynically using this to hold parliament hostage to the idea that they will sell up over even the smallest strengthening of tenants’ rights.
“Long term, if landlords sell up it makes little difference to the housing market.
“Bricks and mortar do not sink into the ground, and the home could be bought by another landlord, a first-time buyer or even repurposed for social housing.
“There will always be some landlords wanting to sell, for example because they are retiring or because their mortgages have become too costly.”
He adds: “The short-term issue is that tenants have an appalling lack of protection when landlords choose to sell up – even under the new Renters (Reform) Bill as proposed, tenants would only have two months’ notice when evicted for this reason.
“Landlord groups won’t lift a finger to improve this position for tenants, while using the risk of homelessness to demand their own concessions from government.
“That is why the government should incentivise homes being sold with sitting tenants, or to them if they can afford to buy. They should also ban evictions based on sales for the first two years of a tenancy.
“Meanwhile, relocation relief should be offered if renters are evicted through no fault of their own, so that they do not need to pay the final two months’ rent while they save and look for a new home.”
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Cider Drinker
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Sign Up9:01 AM, 15th May 2024, About 2 months ago
I’d suggest that the greatest threat to renters is soaraway immigration. It is the burgeoning population that is CAUSING the housing shortage. The lack of rental properties is simply a symptom of this cause.
We could build more houses but landlords don’t want them and a huge number of people cannot afford to buy them. Local Authorities don’t have the funds to build social housing let alone manage and maintain them. They can’t let properties at ‘affordable’ rents when the cost of providing the homes is more than the affordable rent would allow.
Over-population of the U.K. is also partly responsible for a failing NHS, a shortage of dentists, high inflation, government debt and so on.
Always nice to hear from the National Residential Tenants Association.
Reluctant Landlord
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Sign Up9:17 AM, 15th May 2024, About 2 months ago
A re name is in order. National Residential Association for Tenants.
NRAT for short.
Judith Wordsworth
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Sign Up9:46 AM, 15th May 2024, About 2 months ago
What the NRLA has only just realised this beggars belief.
They also should be igniting for LAs and government to work WITH and not AGAINST PRS landlords. If they had then maybe so many of us would not be leaving the sector
Richard Spong
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Sign Up10:10 AM, 15th May 2024, About 2 months ago
Why doesn't the LNRA lobby energetically for the re-introduction of Section 24 ?
If Section 24 was re-introduced it would have a massive impact to the sector. It would encourage landlords to remain in the business, encourage more investment and directly improve the landscape for tenants.
Banging on about Section 21 from a tenant's point of view is not helpful to us.
Monty Bodkin
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Sign Up10:14 AM, 15th May 2024, About 2 months ago
The NRLA’s chief executive, Ben Beadle, said: “Landlords selling up is the single biggest challenge renters face.
“As Peers debate the Renters (Reform) Bill, it is vital that it works for landlords as well as tenants.”
He added: “As it stands, it would achieve this balance....
The droves of landlords quitting clearly disagree.
Landlords can easily see the Renter (Reform) Bill is a pile of crap so who is he trying to kid?
Paul
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Sign Up10:17 AM, 15th May 2024, About 2 months ago
As we have we will probably have labour in government. I agree with Richard, why not lobby them in relation to Section 24. They might want to call it something else but this I feel is the main reason a lot of landlords are leaving the market. As the market is becoming more abrasive I will now be actively considering selling properties as and when either tenants leave or mortgages get to the end of term. It is not a pleasent place to be in at the moment and I've been doing this 35 years. I must say that's due to tax and regulations. All of my tenants are great.
Old Mrs Landlord
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Sign Up10:18 AM, 15th May 2024, About 2 months ago
I particularly liked Ben Twomey's comment that landlord associations won't lift a finger to help tenants! How many fingers have GR lifted to help landlords? Obviously any landlord association works for landlords and members do not pay their subscriptions to enable their association to "help" tenants in the same way that GR members expect Ben Twomey to help them rather than their landlords. The best landlord/tenant relations occur when they work co-operatively in a mutually respectful relationship rather than an antagonistic one. However, many individual landlords have frequently gone to great lengths to help tenants who experience difficulties not of their own making..
Monty Bodkin
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Sign Up10:23 AM, 15th May 2024, About 2 months ago
“Bricks and mortar do not sink into the ground"
They don't get built in the first place without investment from landlords.
NewYorkie
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Sign Up10:25 AM, 15th May 2024, About 2 months ago
"That is why the government should incentivise homes being sold with sitting tenants, or to them if they can afford to buy."
I'd be very happy if this was to happen. I don't want to evict my remaining tenant and her family, but I've had enough of BTL and the growing pressure, which will never let up, and I'm retired, so I don't need the hassle or the heavily subsidised rental income.
However, if a renter receiving LHA wanted to buy, wouldn't they lose their LHA?
Gromit
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Sign Up10:28 AM, 15th May 2024, About 2 months ago
Reply to the comment left by Monty Bodkin at 15/05/2024 - 10:23..or get re-purposed as holiday lets, SA, Airbnb's.
All of which reduces accommodation stock where it is for tenants or owner-occupiers.